The Government is to announce a revised package to help leaky home owners today, Prime Minister John Key said this morning.It would be "significantly" more than the previous offer.The announcement would be made about 4pm today.Previously council
The Government is to announce a revised package to help leaky home owners today, Prime Minister John Key said this morning.
It would be "significantly" more than the previous offer.
The announcement would be made about 4pm today.
Previously councils greeted with anger a proposal where homeowners who drop legal action would agree to shoulder about 64 percent of the cost of repairs and councils 26 percent.
The Government would chip in 10 percent. It would also guarantee loans to ensure owners had access to funds with lower interest rates for those on small incomes and the option of paying off through their estate for older people.
The leaky homes crisis -- estimated to cost more $11.3 billion to fix -- followed deregulation of the building industry, where a resulting lack of rules meant problems with design and products left thousands of homeowners with ongoing problems.
Issues included flaws in design, product, cladding, workmanship, rules and checks.
Home owners found court and Weathertight Homes Resolution Service processes slow and costly with some losing all their settlements to lawyers.
Mr Key said this morning that a new package was on offer.
"We are working really hard, in an environment where Crown Law still says the Government has no liability, to say how do we help those potentially 89,000 homeowners who are stuck in a leaky home, who can't borrow because the banks won't lend to them," he told Breakfast on TV One.
Mr Key told Newstalk ZB the sums involved had gone up "significantly" compared to the last offer.
"It's the best offer we can do."
Under the package homeowners would be able to get homes repaired quickly. However, they would have to give up their right to sue the council. Mr Key said homeowners who had sued had often had any gains eaten away by legal fees.
The Weathertight Resolution Service process had not been effective.
Auckland Mayor John Banks and Wellington Mayor Kerry Prendergast were coming to Wellington for the announcement and they would be briefed at 2pm before a 4pm press conference.
"New Zealanders will be able to see whether we've been fair or not because in my view we have... I think what you are going to see this afternoon is a genuine and real step forward from the Government in an attempt to fix their problem -- a recognition that they have relied on others and we need to try and help them through this," Mr Key told Breakfast.
The problem was comparable to a natural disaster where the Government would be expected to step in.
"In this case I think it is of that magnitude."
